Maybe not the same issue. But I do following: sudo su - www-data or to user which selected in wsgi settings. And do cd 'web2py installation dir' #put your path python web2py.py Set the password and then stop it (Ctrl-C). Restart apache and try to create new application complete with success.
ps. make move parameters_8080.py to parameters_443.py to have my password at appadmin.
